Why Raising Auto Insurance Minimums Matters for Driver Safety and Your Family’s Protection

At Abrams Landau, we closely follow national data on roadway safety and insurance coverage because it directly affects our clients and their families. A new January 2026 report from the American Association for Justice (AAJ) reinforces what many injury victims learn too late, that minimum auto insurance requirements in most states are outdated and often insufficient after a serious crash. The report highlights a growing gap between modern crash costs and decades-old insurance limits, leaving injured drivers, passengers, and families exposed to devastating financial consequences.
More than 40,000 people are killed and over 2 million are injured in motor vehicle crashes each year. Yet in many states, the legally required minimum coverage still hovers around $25,000 per injured person and $10,000–$25,000 for property damage, which are amounts that can be exhausted by a single emergency room visit, helicopter or ambulance transport or the replacement of one newer vehicle.

The AAJ report estimates that while motor vehicle crashes cost more than $340 billion annually, insurance covers only 54% of those costs. Crash victims themselves absorb nearly a quarter, with the remainder falling on hospitals, charities, and taxpayers. This system leaves too many families paying out of pocket for injuries they did not cause.
Some states, including Virginia, have recently taken steps to raise minimum coverage levels, reflecting a broader recognition that current limits no longer match real-world costs. Importantly, data show that states raising minimums do not experience disproportionate premium increases or spikes in uninsured drivers. In fact, insurance industry profits remain strong, undercutting arguments that higher minimums would make coverage unaffordable. The takeaway is clear: better coverage is both realistic and necessary.

Why UM/UIM and MedPay Coverage Are Critical
Even when minimums increase, minimum coverage is rarely enough. Many of the most serious injuries occur when the at-fault driver is uninsured, underinsured, or never identified.
That’s why we consistently recommend that our clients carry:
- Uninsured Motorist (UM) coverage
- Underinsured Motorist (UIM) coverage
- Medical Payments (MedPay) coverage for everyone in their household
These coverages can be the difference between financial stability and long-term hardship if you or someone riding in your vehicle is injured by an unsafe, unknown, or uninsured driver. Adequate insurance coverage is part of that safety net. When coverage fails, the burden shifts to injured individuals and their families, the very outcome mandatory insurance laws were meant to prevent. You can read more about hit-and-run cases specifically at our article here: https://landauinjurylaw.com/blog/do-i-have-to-notify-the-police-or-my-insurance-company-immediately-after-a-hit-and-run/
At ABRAMS LANDAU, our goal is not only to help clients after a crash, but to encourage smart, proactive decisions that protect families before an accident ever happens. Making sure your policy includes meaningful UM/UIM and MedPay coverages is one of the most important steps you can take. If someone you know or love has been injured in a crash involving an uninsured, underinsured, or hit-and-run driver, we are here to help you understand your options and protect your rights. Contact us today to get experienced legal help at frontdesk@landaulawshop.com or call/text us at (703) 796-9555.